Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
What are the key pressure points putting care homes at risk of financial failure? Steve Parker, a licensed insolvency practitioner and a partner at Opus Restructuring and Nick Hood, business risk analyst at Company Watch, share their views.
Press release: Care home sector strengthens, but one in four care home businesses is still financially vulnerable : http://www.companywatch.net/wp-content/uploads/2014/02/Company-Watch-One-in-four-care-homes-still-financially-vulnerable-20140228.pdf
Updated research into the financial health of UK care home companies from Company Watch, specialists in tracking and predicting corporate financial health worldwide, confirms that despite some signs of improvement in the sector, almost a quarter of carehome operators are in its Warning Area six months on from its original study.
What does the latest Company Watch report reveal?
The parlous state of the finances of the UK's 20,000 care homes was first revealed last summer when Company Watch published research showing that almost a third of care home operators were in their Warning Area--indicating heightened risk of insolvency or a major restructuring (see Press release: One in three care home businesses are financially vulnerable).
Now Company Watch has updated its statistics, analysing the latest accounts of 5,037 companies which operate care homes. They found that despite some marginal improvements, nearly a quarter are still financially vulnerable and worse still, that 682 of them have negative balance sheets with debts higher than their assets.
Another adverse finding is that borrowings across the entire care home sector average 75% of net assets, an abnormally high level linked originally to buying the properties in which the homes are located but now pushed ever higher by trading losses. The exposure this causes to the widely anticipated rise in interest rates during in 2015 or even s
Access this article and thousands of others like it free by subscribing to our blog.
Read full article
Already a subscriber? Login
0330 161 1234